If trading maybe, if long term play I still prefer BTI. The latter my biggest long term hold with average cost of 237.54 add to that tax free dividend received of 120.16 makes REI an expensive long term hold. Dividends have made an enormous difference when comparing these two.How long must one wait for REI to take off, been a lot of talk last few years, but I ain't seen no fruit yet. I think only Meneer Rupert and friends doing ok with REI.
But is not the answer to the question best focussed not on the history but the prospects? Setting aside the issue of it only being a modest diversification of the BAT stuff and the seemingly high managment fees - not out of line with hedge fund management charges and income has been used to accquire other assets as well as sales of the BAT( don't ask me the figures)BUT the prospects of the Pensions Corp look excellent and that is really where I think this things future is going to lie. CAGR since inception - inflation beating with little stress for investors...
Never understood this..they would have been better off just keeping all their BAT shares and using the dividends to reinvest, but selling the BAT does not really make sense to me, they getting rid of a cash cow because that is what REI is supposed to do, even if it the wrong thing. And then there are those fees, keeping the Ruperts very very rich..
He personally has 23 billion odd in REI and is working to diversify the BAT holding which has no real long term future. he pretty much HAs to do so or he will be overexposed! Doesn't seem to have done a sterling job of this to date though! Who knows what assets truly lurk in those funds though?
If I remember correctly. According to legislation in Luxembourg, no single asset can exceed 30% of the total net asset value of an investment fund. Reinet had until the end of March 2013 to comply with this regulation. They did obtain extension of the date, but realistically they are going to have to sell some of their BAT., which they are doing
The day he announces that e is out of BAT - this thing will launch. You will either be in it or you will have to watch from the sidelines - that's my thinking. It is also the only cheap private equity company of scale listed on our market - so 300k shares is where I will go. Anyway - after my two exits and re-entries - these shares will only stand me in at about R2. Makes it easier to decide.
I think that this is really a longer term financial/hedge fund play- and their whole style is to buy long term steady income streams which provide downside protection...to an extent BAT already offers a floor and pen corp is the big hlding going forward - and a variety of hedge funds - preytty much as at present. I cannot se it becoming too diversified - that is not their style which seems to be accquire hold and accuire some more - could be wrong...but nothing I have seen for a while makes me feel different?